Chapter 21, Problem 19DQ

To determine

Tablet computers are the most famous brand and most saleable product of Apple. There are various cost associated with the manufacturing of tablets. Some are fixed costs and some are variable costs.

Fixed costs are the cost which remains constant in totality irrespective of the level of activity.

Variable costs are the cost which remains constant per unit. These costs increase in direct proportion to the level of activity at constant rate per unit.

In the question, we have to identify the variable costs and fixed product costs associated with the production of tablet computers.